transportation industry worth
In fact, logistics/trucking has the lion’s share of the transport and logistics market in terms of deal value. Within the transportation industry are five major modes of travel: air, water (both inland and oceanic), motor, rail, and pipeline. (Accenture, 2017), 34% of companies who have moved their supply chain to the cloud said that one of the benefits is giving everyone access to the same information. Last year, the hype was all about self-driving cars and its ability to seamlessly … The transportation industry delivers substantial socio-economical benefits; there no doubt about that. (Robotics Business Review, 2019), Because of the societal shift from ownership to asset sharing, inroads into logistics have been made. People and businesses rely heavily on the country's transport and logistics networks. For top performers, TSR came in considerably higher, at 26%, although well shy of market leader mid-cap pharmaceutical which has averaged an almost criminal 60.1% TSR average per year over the same period. Because of this, it’s becoming increasingly important to gain an in-depth understanding of the transportation industry statistics and data. Profitability has been considerably harder to achieve, even on increasing revenues, with average EBIT up 2% in the same period at CAGR 0.3%. {"title":"Top Challenges for Last-Mile Delivery Logistics Providers","subtitle":"","source":"Source: Dassault Syst\u00e8mes","type":"pie","display":[],"y_units":"percent","data":[{"x":"","xl":"Reducing logistics costs","y":"35","yl":"","color":"auto"},{"x":"","xl":"On-time delivery","y":"21","yl":"","color":"auto"},{"x":"","xl":"Responding to last-minute changes","y":"16","yl":"","color":"auto"},{"x":"","xl":"Aligning warehouse and logistics operations","y":"14","yl":"","color":"auto"},{"x":"","xl":"Minimizin rebounds","y":"7","yl":"","color":"auto"},{"x":"","xl":"Other","y":"7","yl":"","color":"auto"}]} No spam. Globalisation, coupled with population growth and consumption behaviour, has seen ever increasing demand for products from all corners of the world. We discuss its benefits in our, GPSWOX, the winner of our Expert’s Choice award, is an industry-leading GPS tracking and fleet management application. PRE. With reviews and analyses spanning a breadth of topics from software to learning models, James is one of FinancesOnline’s most creative resources on and off the office. Keep it clean. Online shopping trends are tilting in favor of air freight, and unsurprisingly, express-parcel deliveries are on a massive uptick. Rail network providers, port authorities, warehousing, air transport and postal delivery all, too, saw below average ROA over the period. (DHL, 2019), The commercial UAV market in the U.S. had an estimated volume of 2.7 million units in 2020, compared to 600,000 million units in 2016. Globalisation, coupled with population growth and consumption behaviour, has seen ever increasing demand for products from all corners of the world. (Amazon, 2019), Robotic Process Automation can increase the automation level to nearly 100% in customer invoicing and transport planning. Our, Fleetsmith is a comprehensive mobile device management (MDM) system designed to automate tasks and processes for iOS and Mac devices. By mode, trucking dominates transportation spend in the U.S. Inclusive of private fleets and less-than-truckload (LTL), the trucking market is close to $800 billion. Evading these pressures and minimizing backlogs have been the real challenge for industry players. €586 billion of ‘consolidation’ is removed by the firm, in relation to the effect of double counting within the wider value chain. For example, First vision picking execution by DHL, combined with customer Ricoh increased performance by 25% when using smart glasses in logistics. (American Transportation Research Institute, 2020), Global maritime trade was projected to decline by 4.1% in 2020 as a result of the COVID-19 pandemic. 6.0 % 2018. (Transport Intelligence, 2019), Shipping accounts for nearly 2.1% of global carbon dioxide emissions. If you want to remain competitive, now is the time for action. (Transport Intelligence, 2019), Air cargo and rail intermodal tonnage are expected to increase in 2021 by 2.2% and 0.5% respectively, because of the strong growth in e-commerce shipping. Sports retailers must adapt to online demand, warns report. All B2B Directory Rights Reserved. (Capgemini Research Institute, 2019), The Blockchain in Transport Alliance (BiTA), which was founded in 2017, has nearly 500 members in more than 25 countries in the world. In spite of the numerous changes, the global freight volume continues to expand. Together, these modes interact and compete with one another for freight, allowing goods… Download XLS (Redwood Logistics), Interestingly, the annual sale of autonomous trucks is estimated to reach 600,000 units per year by 2035. The research covers data related to 500 T&L companies across 16 industry segments. (Transport Intelligence, 2019), Trucking volumes are projected to rebound in 2021, increasing by 4.9% next year. As customer expectations evolve and digital transformation takes hold, the logistics industry is confronting an era of unprecedented changes. Author Bio: Since 2014, Crystal Eynon has been a writer for a1autotransport.com. (McKinsey & Company, 2018), Surprisingly, only 6% of the largest freight forwarders and ocean carriers offer end-to-end online booking capabilities. In fact, the different sectors of the freight industry are growing, albeit rather at widely segmented rates. The robot leverages advanced AIpowered algorithms to sort recyclable items on the conveyor belt at the rate of 4,000 times per hour. Transport is thus a derived demand and carriers and third party service providers who engage in the chain of transportation must derive value from and add value to the movement (Robinson, 2002). Combined, these factors point to a burgeoning future for the air freight industry. Tril. Aerial delivery is second at (25%), followed by aerial inspection of infrastructure (25%), and aerial surveillance and security (13%). It is an instrumental logistics function that entails moving goods from the warehouse to places where they are demanded. (Trucks.com, 2016), Also, by 2025, more than 30% of new heavy trucks will feature a high-level automation technology. Transportation is, without a doubt, an indispensable economic activity for any business. The Covid-19 pandemic has highlighted the importance of supply chains in helping organisations to deal with demand surges and supply shortages, and as a lever for agility. (PwC, 2019), The estimated impact of the COVID-19 pandemic for the global industry is a decrease in growth of gross value by 0.5% for fast recovery, a 1.3% decrease in gross value for a delayed cure, and negative growth of 6.1% in case of a profound recession. Sea transport, which has, Why businesses should not underestimate supply chain’s value. (ZenRobotics, 2018), Also, by using “H”; an AI version of Kaizen, Hitachi increased productivity by 8% compared to other warehouses without AI. However, going by the above statistics, it’s clear that the industry is on an upward trend. This is then split into: 1. aviation 2. bus and coach 3. light rail, tram and metro services 4. rail 5. taxi and private hire 6. water transport. Transportation and logistics are the backbone of the economy and an integral part of almost every business are also going to spend over $40 billion on … (Amcor, 2020), Interestingly, in 2020, US consumers returned merchandise that was worth $428 billion. Also, transportation has continued to cement its place as a competitive force in business and an integral contributor to the global economy. With mobility solution which is making rapid inroads into the logistics industry, the traditional landscape of the manual processes is getting replaced with automation impacting the standardized processes and workflows. Download PNG image (Amazon), Besides, approximately 25% of US consumers are will to pay higher for the privilege of instant or same-day delivery. In this article, we’ll reveal all the essential transportation industry data and statistics you should know. Units. Air and express delivery services (EDS): Firms offer expedited, time-sensitive, and end-to-end services for documents, small parcels, and high-value items. They’ll help you find ways to remain competitive and optimize your services to meet customer demands. Source. The widespread digitization of the transport and logistics industry, in general, has had a compelling impact on the freight industry. The sector employs more than half a million people across its major sub-sectors: Road Transport, Logistics, Warehousing and Stevedoring. The DJTA is, in … We are able to keep our service free of charge thanks to cooperation with some of the vendors, who are willing to pay us for traffic and sales opportunities provided by our website. To unlock growth and profitability in a challenging sector, transportation and logistics companies need to make bolder and more astute strategic choices than ever before. Find industry analysis, statistics, trends, data and forecasts on Public Transportation in the US from IBISWorld. It is necessary for passenger travel and the transport of goods and cargo. (McKinsey & Company, 2016), The drone logistics and transportation market is expected to grow from $11.2 billion in 2022 to $29.6 billion in 2027. Our statistics compilation has taken you through some of the key areas of the transportation industry. The ongoing evolution in areas like machine learning, artificial intelligence, and immersive technologies has led the innovations in multiple aspects of transportation. The global transportation industry is expected to generate revenue of Since 2005 the industry, on average, has seen a modest uptick in revenues. Put simply, transportation provides the essential services through which a business physically connects to its supply chain partners, namely consumers and suppliers. The top 25 strategy consulting firms in the UK. US$ 2018. However, statistics clearly show that industry players have learned how to overcome these hurdles, hence the growth we’ve seen. Actually, logistics includes not only the transportation of goods but also packaging, storage, delivery, handling, and numerous other aspects. Please note, that FinancesOnline lists all vendors, we’re not limited only to the ones that pay us, and all software providers have an equal opportunity to get featured in our rankings and comparisons, win awards, gather user reviews, all in our effort to give you reliable advice that will enable you to make well-informed purchase decisions. (Robotics Industries Association, n.d.), In 2018, Cainiao; which is 51% owned by Alibaba, opened an automated warehouse with 700 robots working in it. View in full screen Sea transport, will pickup slightly, increasing from 0.3% CAGR to 2.2% CAGR. (PwC, 2019), ZenRobotics has a logistics robot known as the Fast Picker. The transport and logistics (T&L) industry is huge. (Statista, 2020), The number of Google searches related to travel and logistics grew from 8% in 2014 to 14% in 2017. Being a highly fragmented industry, the freight sector in the US has experienced multiple upheavals. (Deloitte, 2018), Interestingly, 69% of companies say cost reduction is the major driver of moving IoT initiatives forward. (McKinsey & Company, 2018), If freight and logistics businesses harness the power of digital technologies that can boost earnings before interest and taxes by up to 13%. The following logistics statistics will help you know what to anticipate from the rapidly evolving marketplace. As the industry confronts these changes, both risks and opportunities will emerge, that’s for sure. (Marsh), Moreover, aerial surveying and mapping (37%) are driving the adoption of UAVs. (GlobeNewswire, 2019), Besides, in 2023, shipments for logistics robots are projected to reach 259,000 units. (GPS World, 2018), Amazon Prime Air delivers packages less than 5 pounds in 30 minutes or less using small drones. COVID-19's effect on the transportation industry. (Transport Intelligence, 2019), The top three biggest challenges to logistics providers in last-mile delivery were reducing logistics costs (35%). The transportation and logistics industry is confronting immense change: digital transformation, new market entrants, changing customer expectations, and new evolving business models. Download CSV (Statista, 2020), NexTraq is a GPS fleet management solution that can be used by companies with fleets ranging from 2 to more than 2,000 vehicles. Download JPEG image (Trucks.com, 2017), The global autonomous vehicle market was valued at $818.6 billion in 2019. In 2020, there was a 7.5% decrease in the market’s growth due to the outbreak. (Transport Intelligence, 2019), The global international emissions will be 70% higher by 2020 than they were in 2005. https://financesonline.com/transportation-industry-statistics This is followed by dry van, refrigerated, and specialized truck loadings (6%), bulk and damp truck loadings (5%), and tank truck loadings (3%). India Transport for Greater Manchester has appointing over forty firms to its framework agreement for external professional services. (McKinsey & Company, 2018), Interestingly, in 2013, Walmart made losses of up to $3 billion because of poor inventory management. As the transportation industry is becoming more technology-driven, great efforts are being undertaken towards sustainability. (McKinsey & Company, 2018), Interestingly, an analysis of large ocean carriers’ websites revealed that more than 50% took 13 seconds to load, whereas 20% took more than 20 seconds to load. S&P predicts that air freight & logistics (6%), followed by shipping (5%), will continue to lead the way … Top 5 Emerging Logistics Markets in 2020 Based on Logistics Performance IndexMalaysia: 6.07 (Statista, 2020), The air freight forwarding market likewise experienced a decrease of 7.7% while the sea freight forwarding market a decrease of 7.3% based on a scenario of severe impact brought about by the pandemic. Learn how it works in our, Wialon is a multifunctional fleet management system that is also used for mobile and stationary assets tracking. (Transport Intelligence, 2019), Besides, freight companies in Europe with less than 50 workers account for nearly two-thirds of the total European road freight market revenues. We walk you through what it can do in our, On average, the EU transport industry emits 24.3% of greenhouse gas emissions. Here are some interesting freight transportation industry statistics you should know. Mario Tama/Getty Images The trucking industry in the United States is worth hundreds of billions of dollars. Considerable variation exists across companies in their respective segments, with the top 10 T&L companies per segment significantly outperforming the average on revenue, up 37% on average with CAGR of 4.6%, while EBIT was multiples higher, at 18% for the period at CARG 2.4%. (DHL, 2019), According to DHL, drivers spend up to 60% of their time away from the distribution center, not driving. After just 6 months of launch, the robots had traveled over 1.5 million miles. Industry trends are affected by factors such as technological innovation, the price of fuel, environmental regulations and safety requirements. Indonesia Indexed against 2005, revenues have increased 22% with CAGR of 2.9% across the industry. The Transport and Logistics sector in Australia has an estimated annual revenue of $102.87 billion, with an operating profit of $10.14 billion in 2018. However, we cannot be sure what this industry will look like in the coming years. (PwC, 2019), The transportation and warehousing market size in the US in 2019 will be $1.3 trillion. (2020). Embracing the digital transformation will unlock incredible value generation opportunities and help you stand out in the already crowded marketplace. Transport and logistics are often aggregated in one industry. Core Transportation Sector … The Covid-19 pandemic has demonstrated the critical need for resilience and agility in pharma supply chains. (Transport Intelligence, 2019), Direct emissions from aviation make up only 3% of the EU greenhouse gas emissions. (FAA, 2021), The global commercial drone market is expected to reach $8,527.4 million by 2027. Generally, a lot of things are taking place in the transport industry. Logistics/supply chain can be broken down into: 1. freight (FreightWaves, 2018), With blockchain, the supply chain for used trucks and trucks part can easily be tracked on a digital ledger as a type of “CARFAX on steroids” for the Transport and logistics industry. But at the same time, the industry has a significant impact on the environmental system. (McKinsey & Company, 2018), Also, mobile search accounted for 43% of the total online searches related to travel and logistics. (DHL, 2019), Better still, the Augmented Reality market is estimated to reach $72.8 billion by 2024. There are new technologies, new entrants, increased customer expectations, and new business models. The T&L industry’s average total shareholder returns (TSR) were, however, not too bad, coming in at 11.4% annual average return over the period 2011 to 2015, just shy of 12% average for all major industries. Freight transport management is the physical process of transporting commodities and merchandise goods and cargo by land, sea, or air. Top 5 Emerging Logistics Markets in 2020 Based on Logistics Performance Index More than 50% of freight and 90% of passenger traffic are handled by road. (Supply & Demand Chain Executive, 2021), Last-mile delivery accounts for the biggest (53%) share of delivery costs followed by collection (37%), sorting (6%), and line haul (4%). Be nice. Speed is the most significant advantage afforded by air transport. However, it is expected to expand by 4.8% in 2021. (Cision PR Newswire, 2017), Moreover, IoT and block facilitate a closed-loop that makes counterfeiting attempts in the pharmaceutical industry difficult to accomplish. BCG named consultancy partner of COP26 climate conference. (DC Velocity), In 2018, SkyCell; a reputable Swiss Tech Firm, created blockchain and IoT-enabled refrigerated containers that brought temperature deviations rate down to less than 0.1%. Global Transportation Sector Revenues. (Logistics Management, 2019), By 2022, the IoT in the logistics market will reach $1,050.95 billion. (Pew Research Center, 2016), Besides, ecommerce companies are investing in logistics too. (United Nations Conference on Trade and Development, 2020), Interestingly, ground transportation industry statistics, road freight the dominant segment, controlling nearly one-third of the total global logistics spend ($1972.9 billion). (Transport Intelligence, 2019), UPS came second with a revenue of $9.81 billion, followed by FedEx with $7.09 billion. Top 5 Emerging Logistics Markets in 2020 Based on Logistics Performance IndexChina: 8.9 Of which, 382,404 are for commercial use. The transportation industry is the collection of modes in which goods are moved from place to place, facilitating trade between different people. This is followed by India (7.39) and the United Arab Emirates (6.36). (IFR, 2020), Most importantly, according to the International Federation of Robotics, between 2019 and 2021, approximately 485,000 units will be sold. The global Railway Axle Market size was USD 211.7 million in 2019. To expedite the adoption, businesses need to come up with strategic and adaptive frameworks. Transportation and shipping industry includes the Automotive, Aviation, Aerospace, Logistics, Maritime, Mass transit, Freight, Shipping and Logistics, Mass transit, Rail transport and Road Transport. (Transport Intelligence, 2019), Besides, the road sector accounts for up to 72% of the total emissions by the EU transport industry. EU Office: Grojecka 70/13 Warsaw, 02-359 Poland, US Office: 120 St James Ave Floor 6, Boston, MA 02116. In the digitized, customer-centric society, the transport and logistics industry is under enormous pressure to deliver excellent customer services. The rise of e-commerce has added to the transport boom, and over the past decade considerable growth has been seen across the industry’s value chain as a whole. Top 5 Emerging Logistics Markets in 2020 Based on Logistics Performance IndexUnited Arab Emirates: 6.36 These past findings can still provide you with insights in the context of these year’s developments: {"title":"U.S. Commerical UAV Market Volume (in 1,000 units)","subtitle":"","source":"Source: Statista","type":"bar","display":[],"y_units":"float","gxl":"","gyl":"","lyl":"","data":[{"x":"600","xl":"2016","y":"600","yl":"","color":"auto"},{"x":"2700","xl":"2020","y":"2700","yl":"","color":"auto"}]} The report has segmented on the basis of model type(2 PL, 3 PL and 4 PL), transportation mode, end-use and key players. Compiled by Consultancy.uk using the views of clients and consultants, meet the country’s 25 leading and most prestigious strategy consultancies. Firms appointed to Manchester's professional services framework. The T&L market is relatively diverse across its value chain in terms of companies interacting to bring about the markers’ wider economic and on the ground effects. Global Transportation Sector Revenues, as a Percent of GDP. Chart context menu An $87 billion industry in the United States, EDS firms also provide the export infrastructure for many exporters, particularly small and medium-sized businesses that cannot afford to operate their own supply chain. document.getElementById("comment").setAttribute( "id", "afbc0cf2a0bed95d163e3bc055e56240" );document.getElementById("g870abf955").setAttribute( "id", "comment" ); FinancesOnline is available for free for all business professionals interested in an efficient way to find top-notch SaaS solutions. Drones to become a mainstream delivery channel by 2040. (Accenture, 2017), Initial research shows that AR has the potential to reduce logistics costs by improving the picking process, which accounts for 55% to 65% of the total warehousing operational costs. Road transport showed considerable variation however, with the top performer bringing in 25.6% while the lowest performer managed -23.8% – the average for the segment stood at 6.5%, just above the total industry average of 4.6% over the period. In terms of market segments contributing the most to the €2.7 trillion industry, logistics execution comes out far ahead, at €2.3 trillion, led by road transport with an almost €1.4 trillion impact. According to the firm’s analysis, the considerable variation in performance, between average and top performers, resulted, in some instances, from failed growth strategies seeking to boost market share in new geographies are partly to blame for lacklustre results, as well as poorly executed M&A deals, whereby integration didn’t result in expected gains. (Accenture, 2017), Most importantly, the global Robotic Process Automation (RPA) market will reach $1.2 billion by 2021. (Supply Chain Quarterly, 2020), After a 4% decline in 2020, truck loadings are expected to increase to more than 5% in 2021. Logistics firms are all out to break industry stereotypes and claim a lion’s share of the $4.6 trillion industry. (Rocket Industrial, 2020), On average, the cost to replace damaged products can be up to 17 times the original cost to ship. Amount. You can have a look at our list of fleet management companies in the US to explore the solutions they provide. Date. It is also common for express freight … More businesses, industries, and groups are learning how to harness the outsized potential of technology. (McKinsey & Company, 2018), Moreover, the distribution of mobile searches amongst the logistics sectors in 2017 was as follows. (Transport Intelligence, 2019), Interestingly, the Memphis International Airport was the busiest cargo airport in the US and the second-largest cargo hub globally, trailing behind only Hong Kong airport. In fact, 41% of US consumers have used a shared economy offering of on-demand, expedited, or same-day delivery service. The coronavirus pandemic significantly impacted the global transportation industry, and its aftereffects are likely to linger for years to come. Transport & Logistics consulting services. (PwC, 2019), Besides, 12% of the share of technology-driven acquisitions in the travel and logistics market. (SupplyChain247, 2018), Besides, by harnessing autonomous technology, the freight industry could save up to $168 billion per year. (PwC, 2018), The global sales of warehousing and logistics robots will reach $18.58 billion in 2026. Passenger transport incorporates operations (driver, pilot and air crew), route planning, customer service and safety. For long, air freight has been a slow burner, but recently, the growth of this sector is gathering pace. Source: Dassault Systèmes. How carriers and agents create value in the maritime chain of transportation is, however, a subject which has been The US trucking industry accounts for more than 5% of … In an industry where the word “innovation” has been used so many times that it feels stagnant, it can be difficult and overwhelming for transportation companies to sift through all the noise and become laser-focused on implementing specific technologies that will benefit their business. On the other hand, companies with more than 250 employees account for approximately 10%. Implementing fleet management software provides a soft start and can be the launchpad to the adoption of other innovations. (Marsh), Also, US commercial drone use will expand tenfold by 2021. Malaysia Every sector of the economy has faced a slew of era-defining technological shifts, but none have felt the disruptive power of technology than the transportation industry. This section contains reports that comprise of data on market segmentation, size and growth in US, UK, Europe, Asia and global markets. From 2021 to 2026, it is forecasted to grow at a CAGR of 3.2%. This is a drop compared with the 5.8% growth rate recorded in 2017. As you may have seen, the key sectors of the transportation industry are on an upward trend, although challenges are in plenty. (Winnesota), Besides, Maersk and IBM, believe blockchain technology can remove the overreliance on paper transactions, which accounts for over 20% of the total cost of transportation. With the use of AR at the distribution center, the search process could be significantly accelerated, and so is parcel loading and dropoff. Hinterland terminals, which saw impressive 13.2% CAGR between 2010 and 2014, will see growth drop to 5.4% CAGR, while rail networks will remain relatively stable at 5.2% and 5.1% CAGR respectively over the same period. What is the market size of the Public Transportation industry in the US? Transportation industry. The transportation industry is responsible for moving people, animals, and goods from one location to another, whether by land, air, or sea. Combined U.S. carload and intermodal originations in March 2018 were 2.10 million—up 5% (or 102,308 carloads and intermodal units) over the same period last year. Through the rise of e-commerce, parcel transportation weighs in as the second-biggest mode behind trucking. (Transport Intelligence, 2019), Also, Europe’s logistics spend accounts for more than 15% of the total global logistics spend. The global air transport industrycontinues to go from strength to strength due to the central role it plays in many other industries. This can be a company transporting its goods, firms moving goods for other companies or third-party agents that arrange the movement of goods on behalf of others. (IBISWorld, 2020), Interestingly, in 2018, the container shipping market reported a growth of 4-4.5% in container volume. Drones could account for one-third of same-day package deliveries by 2040, as unmanned technology and network scale dramatically bring down costs. Blockchain in Logistics. The race to innovate is in high gear as stakeholders tap into technology to solve the challenges that have long plagued the transportation industry. The transport and logistics industry has seen considerable revenue growths in recent years, although across many companies profitability growth has been lacklustre. As you will find out, digitalization is changing nearly every aspect of the transportation industry. As it stands, it’s difficult to accurately tell the direction the future of this industry will take. (Transport Intelligence, 2019), FedEx has a parcel hub at the Memphis International Airport, operating 400 flights a night. Source: Statista. In terms of market segments contributing the most to the €2.7 trillion industry, logistics execution comes out far ahead, at €2.3 trillion, led by road transport with an almost €1.4 trillion impact.
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